ÇHS AR21-ENG-030622

17 Çelebi Ground Handling Inc. 2021 Annual Report II - FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR MANAGEMENT At the annual general meeting of the Company held on 15 April 2021, shareholders approved the payment of a monthly honorarium of TL 10,500 to the independent members of the Company’s board and also voted not to pay any other honoraria to board members who are elected to represent Class A and Class B shareholders. Payments were made to the Company’s independent directors in the first quarter of 2021. No member of the Board of Directors has any outstanding obligations towards the Company that were carried forward from 2020. No member of the Board of Directors was given a loan or paid an advance by the Company in January-December 2021 period. In the January-December 2021 period, TL 115,000 has been paid as advances to our Company’s directors. TL 76,668 of this amount has been repaid during the reporting period and the outstanding advances carried forward from 2021 as at 31 December 2021 amount to TL 38,332. There are no loans made by the Company to its Board members or managers whose terms have been extended or otherwise improved; no sums have been lent to them as personal loans through third parties; neither have they been granted any form of surety such as guarantees etc. on their behalf. III - THE COMPANY’S ACTIVITIES AND MATERIAL DEVELOPMENTS IN ACTIVITIES 6. THE RELEVANT SECTOR, 2021 ACTIVITIES AND PERFORMANCE Civil Aviation Industry In the World… In the Annual Review 2021 that it has released, the International Air Transport Association (IATA) reported that the total demand that would form in 2021 was down by 58.4% as compared to 2019 which is a pre-pandemic period. Taking into account that the demand formed in 2020 was 65.8% lower than in the pre-pandemic 2019, the IATA underlined that 2021 represented a betterment as compared to the previous year. In 2021, international passenger demand was 75.5% below 2019 levels. Capacity decreased by 65.3% and the load factor slid down by 24 points to 58%. Domestic demand, on the other hand, decreased by 28.2% as compared to 2019. Capacity shrank by 19.2%, as load factor slid down by 9.3 percentage points to 74.3%. December 2021 total traffic was 45.1% below the same month in the pre-pandemic 2019, little improved from the 47% decline in November despite the effects of the Omicron variant that plagued the last months of 2021. Bookings for future domestic and international travel that went down as compared to 2019, conventionally less intense months of January and February, and the effect of the Omicron variant are all anticipated to further weaken the flight traffic in 2021. International passenger transport traffic by regions: European carriers saw a 67.6% air traffic decline in 2021 when their year-end data are compared to 2019. Capacity fell 57.4% and load factor decreased 20.6 percentage points to 65%. In December 2021, traffic slid 41.5% compared to December 2019, which still represented a 2% improvement over the data for November 2021 compared to November 2019 data. Asia-Pacific airlines’ international traffic crashed by 93.2% at 2021 year-end compared to 2019, making the region the one that suffered the highest fall in all geographies. Capacity was down 84.9% and load factor fell 44.3 percentage points to 36.5%. Despite 87.5% fall in airline traffic in December 2021 compared to December 2019, there was a slight improvement of 2% over the November data for the same years. Middle Eastern airlines’ annual passenger volume at year-end 2021 was 71.6% below 2019. Annual capacity fell 57.7% and load factor plummeted 25.1 percentage points to 51.1%. Despite 51.2% decline in traffic in December 2021 over that in December 2019, it still shows a slight betterment of 3% as compared to the November data for the same years. North American airlines’ full year traffic fell 65.6% compared to 2019 according to year-end 2021 data. Capacity dropped 52%, and load factor sank 23.8 percentage points to 60.2%. December demand was down 79.6% compared to the same month in 2019, a 3% pick-up over November data for the same years.